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Diamond Hill Cuts United Airlines, Philip Morris

Firm's largest sales of the 1st quarter

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Tiziano Frateschi
May 07, 2020
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Diamond Hill Capital (Trades, Portfolio) sold shares of the following stocks during the first quarter of 2020.

Discover Financial Services

The firm cut the Discover Financial Services (DFS) position by 93.26%. The portfolio was impacted by -1.30%.

The bank has a market cap of $11.99 billion and an enterprise value of $28.62 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 18.96% and return on assets of 1.94% are outperforming 51% of companies in the credit services industry. Its financial strength is rated 3 out of 10. The cash-debt ratio of 0.38 is above the industry median of 0.26.

The largest guru shareholder of the company is

PRIMECAP Management (Trades, Portfolio) with 4.19% of outstanding shares, followed by HOTCHKIS & WILEY with 1.01% and Pioneer Investments (Trades, Portfolio) with 0.31%.

United Airlines

The guru's firm curbed its United Airlines Holdings Inc. (UAL) holding by 58.09%. The portfolio was impacted by -0.91%.

The American airline operator has a market cap of $6.65 billion and an enterprise value of $24.86 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 9.67% and return on assets of 1.94% are outperforming 77% of companies in the transportation industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.22 is below the industry median of 0.27.

The largest guru shareholder of the company is

PRIMECAP Management (Trades, Portfolio) with 14.99% of outstanding shares, followed by Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway with 8.85% and Jim Simons (Trades, Portfolio)’ Renaissance Technologies with 1.35%.

Philip Morris

The firm cut its position of Philip Morris International Inc. (PM) by 38.40%, impacting the portfolio -0.71%.

The tobacco giant has a market cap of $111.33 billion and an enterprise value of $137 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on assets of 19.17% is outperforming 72% of companies in the tobacco products industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.13 is below the industry median of 0.37.

The largest guru shareholder of the company is

First Eagle Investment (Trades, Portfolio) with 0.79% of outstanding shares, followed by Tom Russo (Trades, Portfolio) with 0.57% and the T Rowe Price Equity Income Fund (Trades, Portfolio) with 0.27%.

Eastman Chemical

The investment firm closed its position in Eastman Chemical Co. (EMN). The trade had an impact of -0.57% on the portfolio.

The manufacturer of chemical products has a market cap of $8.09 billion and an enterprise value of $13.74 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 13.7% and return on assets of 5% are outperforming 57% of companies in the chemicals industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.04 is below the industry median of 0.64.

The largest guru shareholder of the company is Pioneer Investments (Trades, Portfolio) with 0.19% of outstanding shares, followed by

Steven Cohen (Trades, Portfolio)’s Point72 Asset Management with 0.09% and Joel Greenblatt (Trades, Portfolio)’s Gotham Asset Management with 0.08%.

Axalta

The firm cut its Axalta coating Systems Ltd. (AXTA) position by 45.67%. The trade had an impact of -0.53% on the portfolio.

The manufacturer of performance coating and transportation coating systems has a market cap of $4.34 billion and an enterprise value of $7.24 billion.

GuruFocus gives the company a profitability and growth rating of 6 out of 10. While the return on equity of 19.75% is outperforming the sector, return on assets of 3.71% is underperforming 51% of companies in the chemicals industry. Its financial strength is rated 4 out of 10. The cash-debt ratio of 0.26 is underperforming 71% of competitors.

Buffett’s Berkshire Hathaway is the largest guru shareholder of the company with 10.31% of outstanding shares. Other notable shareholders include 

Diamond Hill Capital (Trades, Portfolio) with 1.76% and Simon’s firm with 1.69%.

Microsoft

The firm reduced its holding in Microsoft Corp. (MSFT) by 25.29%. The trade had an impact of -0.51% on the portfolio.

The hardware and software designer, developer, producer and marketer has a market cap of $1.38 trillion and an enterprise value of $1.32 trillion.

GuruFocus gives the company a profitability and growth rating of 10 out of 10. The return on equity of 43.82% and return on assets of 16.56% outperform 93% of other companies in the software industry. Its financial strength is rated 7 out of 10. The cash-debt ratio of 1.86 is below the industry median of 2.3.

The largest guru shareholder of the company is

PRIMECAP Management (Trades, Portfolio) with 0.41% of outstanding shares, followed by Dodge & Cox with 0.34% and Pioneer Investments (Trades, Portfolio) with 0.29%.

Disclosure: I do not own any stocks mentioned.

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